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Article
Publication date: 10 July 2017

Guenther Botschen and Philipp K. Wegerer

The purpose of this paper is to engage in the research gap regarding the missing link between retail innovation and branding by providing a brand-driven process to…

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1922

Abstract

Purpose

The purpose of this paper is to engage in the research gap regarding the missing link between retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. The so-called “Brand-driven Retail Format Innovation” (BRFI) approach provides a structured three-phase model that serves as a conceptual guide for the development of any type of retail format.

Design/methodology/approach

Longitudinal collaborative action research over a time span of 20 years plus extended case study research to develop the current BRFI approach.

Findings

BRFI is a circular three-phase framework, which integrates branding, and retail format innovation. It starts with the definition of the intended retail brand identity, which in phase 2 becomes translated into concrete touchpoint experiences along the main constituents of a retail format, finally during phase 3 materializing into the new retail format. A case study of a major food retailer is prototypically used to illustrate the application of the designed approach and to report achieved results.

Research limitations/implications

Brand-driven retail format development based on translating socio-cultural meanings into touchpoint experiences to materialize format constituents is opening up new research avenues to govern retail format development. At present the approach is based on retail and services case studies in Western Austria.

Practical implications

The three-phase model represents a practical tool for retail managers, who want to renew and to develop their retail format in a structured way. The approach is applicable to all retail industries from small- to large-scale organizations as well as online and offline environments.

Originality/value

This is the first study engaging in the missing link regarding retail innovation and branding by providing a brand-driven process to systematically develop retail format innovation projects. BRFI locks into anthropological research findings where cultural meanings are considered as the main source for the construction of brand identities whereby the new retail format is transformed around brand-derived touchpoint experiences.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 7/8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 9 February 2015

Latchezar Hristov and Jonathan Reynolds

The purposes of this paper are to develop a more complete understanding both of the characteristics of innovation within retail firms and of the ways in which retailers…

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5323

Abstract

Purpose

The purposes of this paper are to develop a more complete understanding both of the characteristics of innovation within retail firms and of the ways in which retailers perceive innovation and measure its effectiveness. Whilst there is a broad consensus that innovation is an application of new ideas that stimulate economic performance, the term attracts a wide range of interpretations that are largely contingent upon the context within which innovation occurs.

Design/methodology/approach

These aims are achieved through analysis at the level of the firm by means of qualitative research in the form of a series of in-depth interviews with more than 50 senior retail executives and other industry experts internationally.

Findings

The research results show that whilst retailers clearly recognise the important role of innovation for successful business performance, innovation in retailing nevertheless possesses a range of sector-specific meanings and measurement approaches that are distinct from more generic understandings of the phenomenon.

Originality/value

Whilst the paper summarises relevant literatures and presents the results of the primary research it also sets out a number of novel conceptual frameworks, which seek better to categorise the perceived meanings of retail innovation and the measurement tools most frequently employed to determine innovation effectiveness in retail firms. The proposed frameworks facilitate future scholarly exploration but are also of use to practitioners as a means of better understanding the nature of innovation within their businesses.

Details

International Journal of Retail & Distribution Management, vol. 43 no. 2
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 8 May 2017

Giuseppe Leonardo Pinto, Claudio Dell’Era, Roberto Verganti and Emilio Bellini

Notwithstanding the importance innovation scholars have accredited to design-driven innovation (DDI), no attempts have been made so far to systematically study whether and…

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3302

Abstract

Purpose

Notwithstanding the importance innovation scholars have accredited to design-driven innovation (DDI), no attempts have been made so far to systematically study whether and how this innovation strategy can be used in the retail context in order to gain and nurture competitive advantage. The purpose of this paper is to make a first step towards closing this gap, and therefore understand whether and how companies involved in retail service can create competitive advantage by the adoption of a strategy based on innovation of meanings.

Design/methodology/approach

Due to the complex ecosystem of variables that inevitably influence the problem, the case study approach represents the best option to grasp the different aspects highlighted by the research objectives. The analysis undertook a thorough and systematic comparison with the use of an ad hoc “paired comparison method”, in which common systemic characteristics have been intended as a controlled variable in order to minimise the variance and quantity of factors that can have an impact on the selected case studies; intersystemic differences have been understood as explanatory variables to decree the contribution in terms of novelty in relation to the current paradigm.

Findings

The paper provides empirical insights about how radical innovation in meanings can be a very important lever on which retail firms can act to gain and nurture their competitive advantage.

Research limitations/implications

Of course the study has several limitations, which represent however opportunities for future research. The authors say that the findings, given the exploratory nature of the study, cannot be generalised to any population of firms or markets, rather they should be used as a basis to develop theoretical understanding of a complex phenomenon and draw research propositions and hypotheses to be tested in subsequent deductive empirical research.

Practical implications

This paper highlights the importance to think, beyond shopping experience, at the role of new meanings when designing service innovation in retail firms. Although the findings do not have statistical relevance, given the exploratory nature of the study, they suggest that DDI can be a viable option for retail firm managers to improve their firms’ competitiveness.

Originality/value

The study presented in this paper has merit to broaden the generalisability of the DDI model to other industries, different from those where it was initially studied and applied. This is an important step toward conceptualising DDI as a novel management paradigm.

Details

European Journal of Innovation Management, vol. 20 no. 2
Type: Research Article
ISSN: 1460-1060

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Article
Publication date: 11 June 2020

Nisar Ahmed Channa, Maqsood Hussain Bhutto, Musaira Bhutto, Niaz Ahmed Bhutto and Beenish Tariq

Research suggests that innovation plays a key role in creating a competitive edge and business survival in highly competitive industries like retail. Despite the…

Abstract

Purpose

Research suggests that innovation plays a key role in creating a competitive edge and business survival in highly competitive industries like retail. Despite the importance of innovation in retail establishments, very limited efforts have been made so far to study how innovation influences consumer behavior in retail establishments. This paper aims to identify the impact of relationship benefits (i.e. confidence, social and special treatment benefits) on consumer’s loyalty with the retail store and examine the moderating effect of retailer innovation in these relationships.

Design/methodology/approach

To conduct this study, a sample comprised of 400 consumers of four retail sectors (i.e. household, electronics, textile and food) was chosen. The data were analyzed through partial least squares structural equation modeling (PLS-SEM) technique.

Findings

The findings of this research suggest a significant positive influence of confidence and special treatment benefits on consumer loyalty and that retail innovation moderates the link between relationship benefits and consumer loyalty.

Originality/value

This research contributes to the existing literature in the domain of retail customer loyalty by empirically testing the under-studied phenomenon of retail innovation with the help of contingency theory.

Details

European Business Review, vol. 34 no. 1
Type: Research Article
ISSN: 0955-534X

Keywords

Open Access
Article
Publication date: 27 October 2020

Federico Artusi and Emilio Bellini

The innovation of meaning paradigm is a strategy to radically innovate product and service meanings. While researchers have focussed on the role of product and retail

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1331

Abstract

Purpose

The innovation of meaning paradigm is a strategy to radically innovate product and service meanings. While researchers have focussed on the role of product and retail space meanings as interlinked in the pursuit of innovation, no investigation has been directed towards understanding when the two meanings differ. This research explores how companies can manage two different meanings offered through their retail services and the products sold.

Design/methodology/approach

Due to the highly intangible and subjective nature of meaning, as well as the exploratory aim of the research, a case study approach has been adopted. In particular, the research compares two case studies of similar companies in the beauty industry. Data were triangulated across three different sources: a panel of experts, ethnographic research in the two companies' stores and extensive academic and practitioner publications.

Findings

Findings suggest that innovating the service meaning can be a viable strategy to differentiate a retail offering the product meaning which is no longer perceived as different with respect to competitors.

Originality/value

The study applies the innovation of meaning concept to retail services, distinguishing the meaning given to the store from that given to products, thereby offering managers a strategy to innovate a suffering retail format.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 1
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 18 September 2017

María Fuentes-Blasco, Beatriz Moliner-Velázquez, David Servera-Francés and Irene Gil-Saura

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that…

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3495

Abstract

Purpose

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that has been awakening considerable academic and business interest in recent years. In this study context, this work aims to analyse innovation in retail experiences from two aspects – marketing innovation and technological innovation – to understand the role it exercises in satisfaction and subsequent recommendation.

Design/methodology/approach

The authors’ objective is to investigate the direct and indirect influence of marketing and technological innovation on satisfaction and word-of-mouth (WOM) through three core constructs: store image, consumer value and store brand equity. SEM methodology is applied on a sample of 820 retail customers of grocery, clothing, furniture an electronics store.

Findings

The results show that technological innovation is more important than marketing innovation in shaping image, value and satisfaction. At the same time, store image is the variable that most influences customer satisfaction and that satisfaction is a very significant antecedent of WOM behaviour. Practical implications for retail managers and further research are presented.

Originality/value

The main value of this work has been to go deeper into the study of retail innovation, both in marketing and technologies, and its direct and indirect effects on satisfaction and subsequent recommendation through store image, consumer value and store brand equity. It is a new line of study, which is still fragmented and with little empirical evidence.

Details

Journal of Product & Brand Management, vol. 26 no. 6
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 3 July 2007

Jonathan Reynolds, Elizabeth Howard, Christine Cuthbertson and Latchezar Hristov

Neither retail formats nor business models are static entities. Retailers develop new formats, manage existing formats and discard formats over time, as a consequence of…

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12564

Abstract

Purpose

Neither retail formats nor business models are static entities. Retailers develop new formats, manage existing formats and discard formats over time, as a consequence of many contributory factors in the retail environment. The paper provides a brief summary of our existing understanding of the retail innovation process and of the longer term retail format lifecycle, before placing this alongside recent UK research into the contemporary practice of format innovation. It explores four features of recent format change in the UK that provide the basis for distinctive business models.

Design/methodology/approach

Analysis is derived from interviews with retail practitioners and supported by quantitative evidence from government statistical sources.

Findings

The paper concludes that whilst existing models of retail format change can risk oversimplifying and formalising what are often experimental, incremental and often accidental processes, they can complement our understanding of longer term trends in UK retail formats.

Practical implications

The evolution of retail formats, together with the retail business models of which they are an expression, has been a continuing source of interest amongst stakeholders ranging from consumers, developers and investors. Findings demonstrate that innovation is seen as providing an important source of diversity and renewal for urban and suburban spaces.

Originality/value

The paper is of interest to practitioners and students of retail management.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 10 April 2017

Maria-Eugenia Ruiz-Molina, Irene Gil-Saura and David Servera-Francés

This work aims to attempt an in-depth study of the link between relationship benefits and store loyalty, examining the moderating role of the retailer’s degree of…

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1637

Abstract

Purpose

This work aims to attempt an in-depth study of the link between relationship benefits and store loyalty, examining the moderating role of the retailer’s degree of innovation in these relations.

Design/methodology/approach

An equations model has been contrasted based on 820 valid individual structured questionnaires administered to consumers of 13 trade names in four retail distribution sectors (food, textile, electronics and household goods).

Findings

The results provide evidence of the positive influence of relationship benefits on store loyalty and in particular the benefits stemming from trust. The links between social and special treatment benefits in relation to loyalty are, however, significantly stronger in the less innovative establishments.

Research limitations/implications

This paper provides evidence of the moderating role of innovation on the relationship between social benefits and special treatment benefits and loyalty.

Practical implications

Technology may be used as a differentiation tool. The retailer should concentrate its investments on information and communications technology solutions that contribute to enhance the customer experience at the point of sale without neglecting the social dimension to increase the benefits of trust and ultimately, customer loyalty.

Originality/value

The paper provides an in-depth examination of the retail innovation variable which is scarcely analysed in the literature, offering support for the idea that innovation at the point of sale plays a moderating role in the links between relational benefits and customer loyalty.

Details

Journal of Services Marketing, vol. 31 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 31 March 2021

Bethan Alexander and Anthony Kent

Continuous change has long been recognized as a core characteristic of retailing, its recent acceleration unprecedented, yet innovation in retailing remains…

Abstract

Purpose

Continuous change has long been recognized as a core characteristic of retailing, its recent acceleration unprecedented, yet innovation in retailing remains under-researched, especially within fashion retailing. Therefore, the aim of this paper is to generate a deeper understanding of if, and to what extent, fashion retailers across different market segments are innovating in terms of in-store technology diffusion over time by taking a long-term perspective over five years.

Design/methodology/approach

Drawing on retail change and innovation diffusion theory, the study takes a qualitative approach, using direct observation of 71 fashion stores in London (UK) in 2014 and 2019. In total, 142 stores were tabulated in Excel and qualitatively analysed manually and with NVivo.

Findings

The findings identify the innovation adoption strategies implemented, the types of in-store technologies adopted over time and the fashion retail innovation adopters.

Originality/value

The research offers new knowledge in terms of retail innovation and retail change, specifically on retail diffusion of innovation and the importance of in-store technology integration. Several practical implications for improving technology innovation management are also identified.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 10
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 15 August 2016

Dale Miller and Bill Merrilees

The purpose of this paper is to investigate the historical contributions of complex innovations (both creative and tactical components) in a formative period in a major…

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1076

Abstract

Purpose

The purpose of this paper is to investigate the historical contributions of complex innovations (both creative and tactical components) in a formative period in a major Australian department store, David Jones Ltd.

Design/methodology/approach

The study uses a context-specific lens to examine complex retail innovation. The study adopts a longitudinal design with the focus on a single firm, which met the inclusion criteria. Data collection was predominately from company archival materials and publicly available documents, including newspapers.

Findings

An in-depth analysis of two complex innovations demonstrates the retailer’s successful management of both marketing exploration (innovation) and marketing exploitation of that innovation. Effective marketing requires operational, tactical marketing exploitation to dovetail marketing exploration.

Research limitations/implications

The study is limited to one successful department store. Notwithstanding, there are expectations that the lessons extend to many other retailing organizations.

Practical implications

The practical relevance is clear, with the emphasis on retail innovation (and especially complex innovation) as a basis for both surviving and thriving in an ever-changing marketing environment.

Originality/value

The use of a complex innovation approach is a novel way of examining marketing history. The study concludes that both marketing exploration and marketing exploitation are essential for retail longevity.

Details

Journal of Historical Research in Marketing, vol. 8 no. 3
Type: Research Article
ISSN: 1755-750X

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